ADXN.SW WACC - Weighted Average Cost of Capital
The WACC of Addex Therapeutics Ltd (ADXN.SW) is 5.2%.
| Range | Selected | |
| Cost of equity | 4.4% - 5.9% | 5.15% |
| Tax rate | 16.8% - 18.0% | 17.4% |
| Cost of debt | 7.0% - 7.0% | 7% |
| WACC | 4.4% - 5.9% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.37 | 0.4 |
| Additional risk adjustments | 1.5% | 2.0% |
| Cost of equity | 4.4% | 5.9% |
| Tax rate | 16.8% | 18.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.0% | 7.0% |
| After-tax WACC | 4.4% | 5.9% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADXN.SW | Addex Therapeutics Ltd | 0.05 | 0.37 | 0.36 |
| ALPHA.PA | Pharnext SA | 19402.47 | -0.69 | 0 |
| BOTHE.BR | Bone Therapeutics SA | 8.55 | 0.32 | 0.04 |
| CNWK.DE | Co.don AG | 0.3 | 1.23 | 0.99 |
| CYXO.ST | Cyxone AB | 0.13 | -0.83 | -0.75 |
| ECX.DE | Epigenomics AG | 7.04 | 0.61 | 0.09 |
| RLF.SW | RELIEF THERAPEUTICS Holding SA | 0.07 | -0.91 | -0.86 |
| RTALB.IS | RTA Laboratuvarlari Biyolojik Urunler Ilac ve Makine Sanayi Ticaret AS | 0.03 | 0.33 | 0.32 |
| OBSV | Obseva SA | 3.13 | 0.43 | 0.12 |
| VECT | VectivBio Holding AG | 0.01 | 0.07 | 0.07 |
| Low | High | |
| Unlevered beta | 0.06 | 0.1 |
| Relevered beta | 0.06 | 0.1 |
| Adjusted relevered beta | 0.37 | 0.4 |
ADXN.SW's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for ADXN.SW:
cost_of_equity (5.15%) = risk_free_rate (1.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.37) + risk_adjustments (1.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.